Bonds vs. CDs - Page 2

oldman · 11-25-2007, 12:30 PM

excellent ideas and considering "when" you buy any fixed income product, there will be a better time for some than others. For instance, the market has now run the price of bonds up to rather expensive prices as yield have come down quite a bit, abouy 4% for 10 year treasury. What is the better fixed income product Now? I think yields have a ways to go down yet so there will some increase in prices. How long will prices stay high and when will rates begin to rise again? always questions. What part of the curve do you now buy and are you compensated enough? Here is a current chart.

Market Rates as of 11/25/2007 3 mo.6 mo.1 yr2 yr5 yr10 yr30 yrTreasury13.173.333.243.123.504.124.42STRIPS2 2.683.073.183.093.464.314.44Corporate: AAA33.054.483.954.414.585.105.95Corporate: AA4.724.654.764.975.065.866.06Corporate: A4.744.845.725.7311.156.037.59Municipal: AAA42.823.303.423.443.674.235.04Municipal: AA2.823.353.653.554.074.485.26Municipal: A2.823.353.653.554.074.485.98Tax. Equiv. Muni AAA54.33 5.07 5.26 5.29 5.64 6.5 7.75 CDs64.804.704.604.854.70--------

Are corporates a buy or CD's. How far out on a CD? comments?

oldman · 11-25-2007, 12:47 PM

sorry, chart didn't post the way I saw it.

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11-25-2007, 12:30 PM	#21
oldman Dryer sheet wannabe Join Date: Nov 2007 Posts: 20	excellent ideas and considering "when" you buy any fixed income product, there will be a better time for some than others. For instance, the market has now run the price of bonds up to rather expensive prices as yield have come down quite a bit, abouy 4% for 10 year treasury. What is the better fixed income product Now? I think yields have a ways to go down yet so there will some increase in prices. How long will prices stay high and when will rates begin to rise again? always questions. What part of the curve do you now buy and are you compensated enough? Here is a current chart. Market Rates as of 11/25/2007 3 mo.6 mo.1 yr2 yr5 yr10 yr30 yrTreasury13.173.333.243.123.504.124.42STRIPS2 2.683.073.183.093.464.314.44Corporate: AAA33.054.483.954.414.585.105.95Corporate: AA4.724.654.764.975.065.866.06Corporate: A4.744.845.725.7311.156.037.59Municipal: AAA42.823.303.423.443.674.235.04Municipal: AA2.823.353.653.554.074.485.26Municipal: A2.823.353.653.554.074.485.98Tax. Equiv. Muni AAA54.33 5.07 5.26 5.29 5.64 6.5 7.75 CDs64.804.704.604.854.70-------- Are corporates a buy or CD's. How far out on a CD? comments?

11-25-2007, 12:47 PM	#22
oldman Dryer sheet wannabe Join Date: Nov 2007 Posts: 20	sorry, chart didn't post the way I saw it.

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